At 62nd AGM: UBA shareholders commend bank’s superlative performance, dividend payout.

Aside large payout of dividend to its investors, the bank’s breathtaking performance, shareholders also noted, highlighted its thriving business in its African subsidiaries, which continues to contribute significantly to the Group’s total income.

They made the positive remarks during the bank’s 62nd Annual General Meeting which held at the Congress Hall of Transcorp Hotels in Abuja on Friday, May 24. 

During deliberations at the AGM, the shareholders overwhelmingly approved the Board of Director's proposal to raise additional capital through the issuance of securities comprising ordinary shares, preference shares, convertible and/or non-convertible notes, bonds or any other instruments in the Nigerian and/or international capital market.

In the 2023 financial year, UBA had declared an interim dividend of 17.1 billion naira, representing a pay-out of 50kobo per share for the first half of 2023, thus bringing the total dividend for the 2023 financial year to 95.8 billion naira, representing 2.80 naira per share. 

Surprisingly and in another first, dividend payouts were received while the meeting was still on just seconds after the resolution on dividend payments were passed at the meeting by the shareholders, resulting in open excitement from the shareholders.

Shareholders hail Group Chairman, MD/CEO for innovations, strides 

One of the shareholders who spoke at the AGM, Alhaji Mukhtar Mukhtar, commended the Group Chairman, Tony Elumelu, and the Group Managing Director, Oliver Alawuba, for their concerted effort towards ensuring that the performance of the bank reached unprecedented heights in the year under consideration.

“I want to specially commend the management and Board of UBA, especially the Chairman, Tony Elumelu and the GMD/CEO, Oliver Alawuba, who have been managing activities of this great institution over the past few years,” Mukhtar Mukhtar said.

Mukhtar said they are “impressed at the results that you have recorded so far, how you have managed to maintain a well-structured balance-sheet and diversified balance sheet with total assets growing to over 20 trillion naira”. 

“The achievement that the bank has recorded under your leadership, especially the sterling contributions of our subsidiaries in Africa deserves accolades,” the shareholder stated.

Another shareholder, Patrick Ajudo, also commended Elumelu for keeping the promise made to shareholders a few years ago to begin to pay increased dividend.

“Our Chairman, Tony Elumelu, promised shareholders a few years ago in this same hall, that he will move from 'kobo-kobo' dividends to naira dividends, and he has kept that promise,” Ajudo said. 

He said their excitement is not only because of the promise kept, but for backing it up “by even matching the industry standards”. 

“Indeed, we are proud to be associated with such a brand that has integrity, and we highly commend you for this,” Ajudo stated.

Taking the cue, another shareholder, Barrister Mrs Adetutu Siyanbola, took time to commend the bank’s management for its operations over the decades, especially as it celebrates its landmark 75th year anniversary.

Barrister Mrs Adetutu praised the gender balance and high female representation on the bank’s board, which according to her, is a feat worth emulating by other financial institutions in Africa.

While commending the Group Managing Director for wining several awards in the 2023 financial year, she expressed satisfaction that the bank did not incur any penalty in the year under consideration.

This, Barrister Mrs Adetutu said, meant that UBA had zero infractions and didn’t run foul of any regulations.

Appeal to re-invest dividends in bank’s recapitalisation drive

Speaking earlier during the AGM, UBA Group Chairman, Tony Elumelu, appealed to shareholders to participate fully and re-invest their dividends in the bank’s recapitalisation drive.

This, UBA Group Chairman explained, will ensure that they continue to enjoy even higher returns from their investments.

“I call on you shareholders to re-invest a substantial part of your dividends in our rights issues which will be announced soon, as we will be giving you the first opportunity to own a share in all the countries where we operate, I am advising shareholders, as you get your dividends, reinvest a significant part of it,” the Group Chairman said. 

The Group Chairman said he and board members “would be investing 100% of the dividends” they get. 

He saying without doing so, they “would be leaving food on the table for others who did not labour for it” to enjoy. 

UBA’s impressive records 

At the end of the 2023 financial year, UBA recorded an impressive leap in gross earnings, as it grew from 853.2 billion naira recorded at the end of 2022 to close at 2.07 trillion naira.

This represents a strong 143 percent growth; total assets also rose remarkably by 90.22 percent, to close at 20.65 trillion naira up from 10.86 trillion naira in 2022.

Profit before tax, also grew exponentially by 277 percent, to close at 758 billion naira, up from 200.88 billion naira recorded in 2022; while Profit After Tax, PAT, grew by 257 percent from 170.2 billion naira in 2022, to 607 billion naira. 

Pledges for unrelenting focus on market leadership…

The Group Managing Director/CEO, Oliver Alawuba, explained that despite being a year of significant geopolitical and economic challenges, UBA’s strength, the effort and dedication of the team, and its leadership in strategic areas such as innovation and sustainability, helped the bank to grow in a profitable and sustainable manner,

Looking ahead, Alawuba said: “The outlook is great because we are diversified. Our African subsidiaries contributed over 55% to the bank’s profit this year, and we will do more. Already, the Bank entered 2024 from a position of strength, with proven resiliency, a powerful brand and a strong capital position”. 

The Group Managing Director/CEO added that: “As we begin 2024, “execution” will continue to be on the front burner, with an unrelenting focus on market leadership and excellent customer experience at all touch points”.

About UBA Group 

United Bank for Africa is one of the largest employers in the financial sector on the African continent, with 25,000 employees group wide and serving over 35 million customers globally. 

Operating in twenty African countries and in the United Kingdom, the United States of America, France and the United Arab Emirates, UBA provides retail, commercial and institutional banking services, leading financial inclusion and implementing cutting edge technology.